All price data is 20 minutes delayed or more – To get ADVFN's live FOREX service Click Here

• A
• B
• C
• D
• E
• F
• G
• H
• I
• J
• K
• L
• M
• N
• O
• P
• Q
• R
• S
• T
• U
• V
• W
• X
• Y
• Z

• Leverage
• LIBOR
• Limit Order
• Liquid
• Long Position

Leverage

Using leverage in the context of the forex market means trading on a margin. It is when traders only put up a percentage of the full amount to start a transaction, allowing them to trade with larger sums of money. A broker quotes a ratio which represents the amount they are prepared to lend a trader, for example; 100:1 is a 1% margin requirement so for every £1 the trader puts up, the broker will lend him £100. See Margin.